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California Partial Sales/Use Tax Exemption for Mfg & R&D Equipment

California Partial Sales/Use Tax Exemption for Mfg & R&D Equipment

Funds manufacturers in California through sales and use tax relief tied to production and development equipment.

OpenCalifornia Department of Tax and Fee AdministrationUnited StatesEligible in California
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About

The California Partial Sales and Use Tax Exemption for Manufacturing and R&D Equipment is a statutory exemption from a portion of California's sales and use tax on purchases or leases of qualified tangible personal property. Authorized under Revenue and Taxation Code section 6377.1 and most recently extended through June 30, 2030 by AB 398, the exemption provides an effective rate reduction — not …

What this grant funds

California partial sales and use tax exemption on purchases of machinery and equipment used primarily in manufacturing, biotechnology, or physical and engineering R&D operations.

Key facts
CycleiHow often this grant runs — e.g. annually, on a rolling basis, or a one-off call.Rolling
Next deadlineiThe next date applications are due. Rolling means you can apply any time.Rolling
Decision timeiTypical time from the deadline to the funder's decision.—
Project durationiHow long the funded work is expected to run.—
Award typeiThe form of funding — grant, equity, loan, tax credit, etc.Tax credit
Match fundingiThe share of project costs you must cover yourself. 0% = fully funded.0%
Funding pooliThe total budget available across all awards in this round.—
Funding analytics

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Industries

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Eligibility criteria

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Last verified: 24 Jul 2026Source: cdtfa.ca.gov